Retail News CRM

Tag: takeover

  • Danone Boosts Australian Footprint with Profitable Made Group Takeover

    Danone Boosts Australian Footprint with Profitable Made Group Takeover

    Global food corporation Danone is extending its foothold in Australia by acquiring Made Group, the parent company of Cocobella and Rokeby. This transaction is an element of a two-part acquisition designed to increase Danone’s influence in the Asia Pacific region. In addition to this, Danone has also announced the full ownership of its fresh dairy joint venture with Saputo Dairy Australia by acquiring the remaining 49% stake.

    Made Group’s consistent performance with “appealing profit margins”, backed by its sales of $490.7 million in the last fiscal year, was a driving factor behind the acquisition. Made’s portfolio includes popular brands such as The Collective, Nutrient Water, and Impressed.

    Mutual Values and Profitable Growth

    According to Antoine de Saint-Affrique, CEO of Danone SA, Made Group has had a remarkable history of fast and profitable growth, thanks to its robust brand portfolio and health-focused nutritional products. He notes that both companies share a belief in promoting health through food and expressed excitement about welcoming Made into the Danone family.

    Made Group was sold by US-based TPG Capital in a transaction that earned TPG approximately $2 billion, a mere five years after it had purchased the beverage business.

    Shared Commitment to Health and Innovation

    Amanda Butler, CEO of Made, views this as an exciting new phase for the company. She acknowledged Danone’s shared commitment to health and enthusiasm for innovation, expressing optimism about future prospects. Butler anticipates that their joint efforts will unlock new infrastructure, capabilities, and research and development expertise, spurring growth across the region.

    Questions & Answers

    What companies has Danone recently acquired in Australia?
    Danone has recently acquired Made Group, the parent company of Cocobella and Rokeby.

    What motivated Danone’s acquisition of Made Group?
    Made Group’s consistent “attractive profit margins” and sales performance, coupled with its strong brand portfolio and focus on health-focused nutritional products, influenced Danone’s decision to acquire the company.

    What are the anticipated benefits of this acquisition for Made Group?
    Following the acquisition, Made Group expects to access new infrastructure, capabilities, and research and development expertise to accelerate growth in the region.

  • Chinese Giant Anta Sports Eyes Takeover Bid for Struggling German Brand Puma

    Chinese Giant Anta Sports Eyes Takeover Bid for Struggling German Brand Puma

    Anta Sports Products, a prominent Chinese sportswear manufacturer, is reportedly considering the acquisition of German sportswear brand, Puma. It’s understood that Anta, listed on the Hong Kong stock exchange, is currently working with an adviser to examine the feasibility of a bid for Puma. If the proposition proves profitable, Anta may collaborate with a private equity firm to proceed with an offer.

    Potential Competitors in the Bid

    Alongside Anta, other possible contenders for the acquisition include the Chinese sportswear group Li Ning and the Japanese sportswear company Asics. Li Ning has reportedly been engaging with banks to discuss financing for a potential bid, giving an early indication of the company’s interest in Puma. As for Asics, there’s speculation that it could also show interest in the German sportswear brand.

    When approached for comments on the acquisition, Anta Sports, Puma, and Asics didn’t offer immediate responses. On the other hand, Li-Ning provided a statement indicating that the company had not yet participated in any significant discussions or assessments relating to the transaction mentioned. The company further stated that its main focus remains on the expansion and evolution of its brand.

    Shareholder’s Stand

    Artemis, the private holding firm that has the biggest share in Puma and also controls Kering, the owner of Gucci, has stated that it’s exploring all options for its 29% stake. Information from a source previously revealed that Artemis had no intentions of selling their shares at the market value as of September.

    Puma’s current market valuation stands at 2.52 billion euros, equivalent to $2.92 billion. The Pinault family that manages Artemis obtained its stake in Puma in 2018 from Kering when the luxury conglomerate transitioned into a pure luxury player focusing on brands like Gucci and Saint Laurent.

    Strategy Shift

    In October, Puma’s new CEO, Arthur Hoeld, announced that the brand would decrease discounts, enhance marketing, and trim its product range. This strategy change was part of Puma’s turnaround plan following a dip in demand for its products and the impact of US tariffs on imports. The plan also included cutting 900 corporate jobs.

    The competitive sportswear market has seen Puma’s share price fall by half since the beginning of this year, losing ground to its competitors.

    Questions & Answers

    Who are the potential bidders for the acquisition of Puma?
    Anta Sports Products, Li Ning, and Asics are the potential contenders for the acquisition of Puma.

    What is Puma’s current market valuation?
    Puma’s current market valuation is approximately 2.52 billion euros or $2.92 billion.

    What is Puma’s new strategy under CEO Arthur Hoeld?
    Puma’s new strategy involves decreasing discounts, enhancing marketing, reducing its product range, and eliminating 900 corporate jobs as part of its turnaround plan.

  • WK Kellogg reports sharp drop in Q2 earnings amid Ferrero takeover

    WK Kellogg reports sharp drop in Q2 earnings amid Ferrero takeover

    The major breakfast cereal and snack producer, WK Kellogg, has revealed a significant drop in its net income for the second quarter as it readies itself for an upcoming acquisition by Ferrero Group.

    Drop in Earnings

    The company’s net income for the quarter was a mere $8 million, a significant decrease from the $37 million earned in the same period last year. This represents a year-over-year decrease of 78.4%.

    The company’s net sales for the second quarter also dipped by 8.8%, coming in at $613 million. This slump reflects the weakening consumer demand across all of WK Kellogg’s markets.

    Pending Acquisition by Ferrero Group

    WK Kellogg had previously announced a definitive agreement to be purchased by Italy-based Ferrero Group in an all-cash deal worth $3.1 billion. The deal is anticipated to close in the latter half of the present year, provided it receives the required approval from regulators and shareholders.

    Gary Pilnick, chairman and CEO of WK Kellogg, stated, “Despite the challenging operating environment, we experienced in the second quarter, we are making tangible progress against our long-term strategic priorities, including our supply chain modernization initiative.” He continued, “Our team remains committed to executing our plans for the remainder of the year and preparing for the future as we look forward to merging with Ferrero and commencing this exciting new chapter for WK.”

    The acquisition is viewed as a crucial move to expedite WK Kellogg’s transformation under Ferrero’s stewardship, capitalizing on complementary product portfolios and global outreach.

    Questions & Answers

    Why did WK Kellogg’s net income decrease in this quarter?
    The decline in net income is attributed to weaker consumer demand across all of WK Kellogg’s markets.

    What is the value of Ferrero Group’s acquisition deal with WK Kellogg?
    Ferrero Group has agreed to acquire WK Kellogg in an all-cash deal worth $3.1 billion.

    What does WK Kellogg anticipate from the prospective merger with Ferrero Group?
    The merger with Ferrero Group is expected to fast-track WK Kellogg’s transformation, leveraging the combined strength of their product portfolios and global reach.

  • Malaysian Farmers Explore Legal Action to Safeguard 2,400 Ha of Durian Farmland from Corporate Takeover

    Malaysian Farmers Explore Legal Action to Safeguard 2,400 Ha of Durian Farmland from Corporate Takeover

    The Save Musang King Alliance, under the leadership of president Wilson Chang, is raising alarms over DOA Plantation, a company barely a year old, for allegedly occupying approximately 2,400 hectares of durian orchards without proper consent.

    Accusations Made Against DOA Plantation

    Chang has voiced serious concerns that the firm has forcibly ousted farmers, marked their durian trees, and has yet to produce any official documentation to substantiate its claim over the land, as reported by Free Malaysia Today. In a recent social media post, Chang lamented, “There is strong reason to believe that the firm intends to harvest durians this season and profit from the hard work of local farmers, without any compensation.”

    Entirely undeterred, the alliance is exploring legal avenues to halt DOA Plantation’s operations and safeguard local growers’ rights. Chang also called attention to the puzzling circumstances surrounding how such a vast area of land was handed to a company led by directors from Penang and Sarawak, urging the Pahang government to clarify the situation. He emphasized, “We reaffirm our core belief that the land is the lifeblood of our farmers, and that every tree represents years of hard labour and care. No corporation should be allowed to exploit this without consequence.”

    The High Stakes in Durian Farming

    According to Chang, the new company aims to seize control of around 2,400 hectares of farmland, intertwining orchards that have previously sparked ownership disputes between local farmers and authorities. The anticipated harvest from these durian trees alone is estimated to be worth over RM100 million (US$24 million)—a lucrative bounty that has everyone on their toes.

    Chang also noted that although discussions with the Pahang government regarding the farmland have not completely met farmers’ demands, there has been “meaningful progress” after five years of determined resistance from Musang King durian farmers in Raub. To date, the price of Grade A durians has seen a boost from MYR30 per kg in 2020 to MYR35 today, along with clearer grading standards aimed at ensuring fairer payments for farmers.

    With these advancements in mind, the Save Musang King Alliance is contemplating an out-of-court settlement with the Pahang government, redirecting its energies toward the legal battle against DOA Plantation.

    Challenges Ahead

    In an earlier incident in April, the Pahang government cut down over 1,000 durian trees, asserting they were cultivated on illegally occupied land. The alliance claimed a court ruling from the previous May prohibited such demolitions, while authorities countered that no judicial orders were contravened and defended their right to clear the land.

    Meanwhile, the Malaysian Anti-Corruption Commission has announced it is currently gathering relevant documents as part of its investigation into the land encroachment allegations. Several former government officials linked to the case have been identified, but as yet, no arrests have been made. One can only wonder what surprising twists lie ahead in this unfolding saga of durian drama!

    Questions & Answers

    What are the main allegations against DOA Plantation?
    The main allegations include forcibly removing farmers from their land, marking trees for harvest, and failing to present any official documents proving their right to operate on the 2,400 hectares of durian orchards.

    How has the Pahang government responded to the situation?
    The Pahang government has defended its actions, including the removal of over 1,000 durian trees, stating they were on illegally occupied land and asserting that no court orders were violated.

    What next steps are being considered by the Save Musang King Alliance?
    The alliance is contemplating legal action against DOA Plantation while also considering an out-of-court settlement with the Pahang government to better focus their efforts in this ongoing land dispute.